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tv   Bloomberg Markets European Close  Bloomberg  September 16, 2016 11:00am-12:01pm EDT

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close on bloomberg markets. ♪ mark: we will take you from new york to london to moscow in the next hour and covering stories out of frankfurt and tokyo. here is what we are watching today. deutsche bank shares fell off, the u.s. just apartment is going after the german lender, seeking at least $14 billion to settle a probe of open mortgages. julie: after the boe left changes, the fed and the bank of japan will make their decisions, will either one-shot the markets. apple's new iphones gone on sale today, high demand, they are turning away customers who did not preorder online. mark: have a look at my european equities, 30 minutes left in the global macron,
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movers, there is your equities column, falling for the fourth day in five. the boj and the fed, the forex column, yields are falling. just want to get to the big moving stocks. a u.k. investor, is as an unsolicited bid by a boston-based firm undervalues it and it has other offers. for $1ay, it was offered billion in cash, equating to 650 pence per share, the offer was final and cannot be increased. the offer was 2.4% less than recentlyany's most published net asset value, half of this is more than $42 billion in assets.
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svg, which invests in private equity, has traded in london since 1996, shares at six pounds 78. keep an eye on that company in the next few days. but the mackie, a finnish company, shares up 4%, the world's biggest to packaging carnegieraised to buy, says it offers a combination of growth and defensiveness, the price target is 46 euros versus an earlier 42 euros. we are at 41 euros today and it has seen growth of zero percentage points above gdp growth in developed markets and two times gdp growth in emerging markets, earnings growth to come through continued m&a on average adding 3% to 5% to average eps in the next five years. look at the shares, up 4%. fiat chrysler, news that came
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out after the close yesterday, shares flat on the day, lower earlier, about 1.4 million cars being recalled in the u.s. and trucks over a condition that may keep a seat belt tight nurse and airbags from deploying in a crash, there have been three fatalities and five injuries possibly related to the situation. the problem arises with a particular combination of restraint control devices, front impact sensor wiring, and type of collision. 500-9000l extends to vehicles outside the united states. shares are down roughly 6/10 of 1%. tradinges into the session in the united states, how is it looking, julie? julie: we saw a big game in stocks yesterday, a cause, a pullback in the u.s. come all three major averages down, the nasdaq falling the least, just a quarter of 1% and a reminder to
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look for volatility and higher estimated volume. at last check, volume on the s&p about 80% above the 30 day average. we havebecause expiration of futures and options contracts today. the s&p 500 still higher on the week but not by much, less than one half of 1% at this point. we will look at how that looks throughout the day. real estate investment trust separates from financials as a group after the close. there will be 11 sectors in the s&p 500. let's look at the big losers. and the s&p particularly, oracle , that couple he reported earnings after the close of trading, missed analysts projections, the transfer jackson to the cloud -- the transformation to the clout has been slower. the exxon being looked at by the new york attorney general, saying that perhaps did not write down the falling while you -- value of oil.
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apple taking a breather, only down a half a percent. jpmorgan down more than 1%. groupthe worst-performing i had of the fed decision next week. for more detail, you see the banks falling today, they have been not all the time but trading more in tandem with interest-rate. the 10 year yield a little bit lower today, banks lower as well. goldman sachs made an equity call, the stratus -- strategist downgrading the stoxx 600. we are looking at intel. that is a known liar after they raised its sales forecast, it is rising 2.5%, raised its margin outlook as well. they say they are seeing a resurgence in pc sales. assets we are watching, the dollar at the highest since july. going into that fed meeting.
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crude oil down 1.5%, contributing to the drop index on and gold futures off at about one third of 1%. the lowest since august. let's check in on the bloomberg first word news. of where president obama was born is a campaign issue again, donald trump says he will have something to say about it today. -- neverver late personally backed off the stance that the president was not born in the u.s. hillary clinton says donald trump owes the united states and apology -- the president an apology. hillary clinton: for five years he has delegitimized our first black president. his campaign was founded on this outrageous lie. >> clinton says donald trump is feeding into the worst impulses, the bigotry, and bias that lurks in the nation. two top republicans having
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second thoughts about the bill to let families of 9/11 victims sue saudi arabia, they want to postpone a vote whether to override president obama's expected veto. lindsey graham and bob corker echoes the president's complaint that allowing u.s. citizens to sue another government may open the door for the same thing to happen in the u.s. ,t the summit in slovakia european union leaders talking of unity of purpose on migration. evidence there eastern countries want to share the burden of asylum-seekers. hungary,:, slovakia, and the czech republic showing for a strengthening of security, they want better control of the eu southern border. british foreign secretary has said that former brexit talks will likely begin early next year. reporters that the u.k. must apply clarity and certainty on plans to leave the european union. news 24 hours a day
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powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. mark: thank you, on the eighth anniversary of lehman bankruptcy, a former treasury secretary larry summers showed that big banks in those that's are no safer now than before the financial crisis. to reach the conclusion, some look at stock yields. david gura asked him about these market based barometers of risk. >> it is a base -- basic financial argument you learn in your first finance class that when something becomes more levered, the beta goes up and the data goes down when it becomes less levered. we thought we were testing that very simple finance or proposition and if that was the main thing going on, we thought that if the banks had become far less levered as the regulatory community says they have, we
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expected to have beta go way down. and thatot what we saw is why we thought a certain amount of reflection on what was going on with financial regulation was appropriate. >> you see the decline in banks franchise value, how much can you attribute that to regulation versus say low interest rates? >> that is a very important question and not one we were able to provide direct evidence on in the paper. bankreading analysis of security pricing, from talking to people who were involved in the markets, i think it is difficult to escape the conclusion that both are important factors. certainly lower interest rates and flatter yield curves have had their impact but i think it is clear that whether it is the magnitude of the fines that have
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been levied or a variety of the business practices that have been curtailed, or diversification that has been forced, that steps have also been taken that have reduced the value of banks and by reducing their franchise value have made them more effectively levered relative to all they have that is viable. -- valuable. >> what do you want to take away to be for regulators and those involved in the supervising of large financial and titian's -- financial institutions? what do you think the takeaways are? >> you need to look to market measures of capital and regulatory -- accounting, regulatory concepts of capital. you need at this moment to avoid
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complacency, that everything is ok. you need to have a clear awareness that it is the market value of equity that has historically been substantially predictive of trouble. by those measures, cushions are not as large as they have been historically. and that you have to become just of the fact that the conscious of the fact that if you want robust, be healthy and the regulatory framework has to be consistent with their ability to earn a reasonable rate of return. >> secretary summers, i have to ask about the fomc meeting. you had to cheer the speech given a few days ago. >> i will stay out of that but i think there is no compelling
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case of any kind for a rate increase in september. an economying at where the number of hours people have worked, the total hours in the economy has basically shrunk in the last six months. where measures of medium-term inflation expectations are either stable or declining. and where actual inflation is below the fed's 2% target. i cannot see any case at all for a tightening. i worry that the framework that the fed is using really is not a consistent one. they speak of a 2% inflation target. not a 2% inflation ceiling, a 2% inflation target. inflationl have a 2%
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target, that means sometimes you will be above it and sometimes below it. if you are in your eight year of recovery and 19 year of recovery and the unemployment rate is in the fours, if that is not the time when you will be about 2% come i cannot imagine when that time would be. i do not understand why the discussion that comes out of the federal reserve is about the need to halt or slow the economy so that inflation does not ever get above 2% when it seems to me that consistent with their framework and their principles they should want inflation to be a little above 2%. this is a point governor brainerd makes, the stakes are very large because, in this world of secular stagnation, low neutral interest rate, if another recession comes, the fed will have very little room to address it. they have nothing like the 500 basis points they have had historically. that means they have to lean
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over backwards to make sure another recession does not come. the hypernderstand concerned about inflation getting about 2% when that will not happen, it probably would be ok if that did happen. which i canidence see no basis for in the evidence , that somehow if we did have another recession it is something the fed would be able to manage their there needs to be a significant strategic realignment in the fed posture. certainly that means not raising rates in september. mark: former treasury secretary larry summers speaking to david gura. julie: still ahead, deutsche bank shares falling today, down 8.5% on news the u.s. is seeking $14 billion to settle mortgage fraud. the bank says it is not paying that much. we will take why. ♪ -- we will tell you why.
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♪ julie: live from new york i am julie hyman. just 15 minutes to the european close. mark: we are in london, i am mark barton. toyota bankshares still falling by the most since the aftermath of the brexit vote, the bank says the justice department is seeking $14 billion to settle a probe tied to residential mortgage-backed security's. saidstatement, the bank deutsche bank has no intention to settle these potential civil claims anywhere near the number cited. michael moore covers the financial industry for us. what will it end up paying? $14 billion between
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and $2 billion to $3 billion able were talking about months ago. this is a big gap and the u.s. department of justice being aggressive, they have been aggressive with other banks in the past. in previous cases, the negotiating was done behind closed doors. not in the public. -- 5.5e has $5.5 billion billion euros in settlements and finds, will it have to boost those? >> most analysts have at boosting those over the next butle of years anyway certainly they have a lot of other litigation issues, this is not the only one they are facing. they would not like to use the entire reserve on this case. most of the market was looking for somewhere in the $2 billion to $4 billion range before this news came out. they would like to get it toward that. mention this was
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unusual that the negotiations are happening in public versus behind closed doors. then coming out with the fine. have we gotten reaction from justice about deutsche bank saying this is not what we will pay? do we have insight as to why the amount became public before the back-and-forth went on? >> the amount was reported by a few news outlets and at deutsche bank fell the need to respond -- felt the need to respond because the stock price was not priced in. deutsche bank clearly felt the need to reassure people this was not be final number. the justice department has not said anything publicly. in response to that. deutsche bank mentioned that this is an early stage of the negotiation. obviously something that will continue on for a while. julie: how did this fine -- or this reported fine compare to
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some of the other finds other banks have paid? >> bank of america paid the largest come over $16 billion but they had a much agribusiness, merrill lynch, countrywide, it is not comparable. when you look at goldman sachs and morgan stanley, they paid in the $2 billion to five a dollar range, citigroup and j.p. morgan paid a little more than that. this would be an outlier relative to the size of the mortgage. mark: what does this mean for the other banks? ubs, barclays, credit suisse? shares lower. >> falling down on what appears to be the aggressiveness of the u.s. authorities. most have the doj only to worry about.
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investors are a little cautious after seeing this news. mark: deutsche bank assures -- shares down. julie: still ahead, russia's central bank cut a key interest rate to 10% in line with estimates but it statement took some investors by surprise. we will tell you why next. this is bloomberg. ♪
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♪ julie: this is bloomberg markets in new york, i julie hyman. mark: live from london i am mark barton. seven minutes left of the friday equity session. russia's central bank cut its key interest rate for the second time this year, the 50 basis point cut to 10% in line with analyst expectations. its announcement there would be no further cuts this year came as some what of a surprise. -- is this a case of hawkish easing? >> precisely, this is the phrase
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that came up today after the central bank of russia announced its current after -- it's cut. 37 out of 42 economist said that there will be a move and others said there will be no change. the surprise is still there because this is it, no more cuts this year. the central bank governors said this today. she did not rule it out entirely that to keep inflation -- but to keep inflation -- not to rekindle inflation, this is the plan to cut no more this year. this came as a surprise. julie: it looks like this surprise, the commentary is perhaps what might -- russian markets are reacting to, russian stocks down, russian bonds with the biggest decline in two weeks, more about not just what they did today but what they are saying they will not do for the
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rest of the year. >> yes, precisely. this is the market reaction, not after the rate cut but after the communication from the central bank that there will be no more this year. although, not everyone believes that and we had comments from citibank today saying that it is not off the table, it still may happen. another 50 basis points this year. although central bank governors say it will be next year and will be on a smaller scale, 25 basis points. mark: where are we in the inflation outlook? >> inflation eased in august to 6.9%, the lowest in more than two years. but the central bank is aggressive in its forecast and expectations to reach 4% by the end of 2017. you, thank to see
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you for news on that big decision, a decision expected by the hawkish easing protection was not. look at where european equities are trading. five minutes from the end of the friday session, stocks down for the fourth day in five. what a week, investors looking ahead to next week. the bank of japan meeting. stoxx 600 down by 7/10 of 1%. a look at the currency markets. see, sterling down against the dollar, the euro up against the pound and the pound down. ♪
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mark b.: live from new york and london, you are watching the european i am mark broughton with julie hyman. -- european i am
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mark barton with julie hyman. this is the worst weekly performance sense june 17. i am bombarding you with stats. this is the stoxx 600 banks index. look at the worst performer -- deutsche bank, 8.4% lower. that is the biggest drop since after the u.k. referendum, equates to 1.5 billion euros. it receives a $14 billion claim from the u.s. justice department to settle an investigation into the settlement of the sale of mortgage-backed securities. deutsche bank says it is a figure it is not willing to pay. they have been read -- removed from the stock list. of $3.25rage estimate billion -- deutsche bank down by
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8.4%. just two banks rising in europe today. this is interesting. these are deutsche bank's riskiest bonds. they have plummeted today. 1.7 billion euros of 6% additional tier one bonds. these are the first notes to take losses in a crisis, following five euros to $.78. the biggest intraday move since june 24, the biggest ever on a closing basis. we are above the february lows of $.70, but interest payments on additional tier one bonds can be switched off if a lender runs into trouble, and this is interesting -- germany's biggest bank, according to credit site, has the least available distributor but funds among banks in europe. -- district double funds amongst banks in europe. that is a chart you want to keep an eye on. this is a chart i have made up for today given where we have come from from the ecb meeting
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last thursday. this is my asset check since thursday, september 8. let's start with the all country world index, a gauge of developed and developing indices. it is down 3.2% since last thursday. wednesday this week we had the lowest level since july -- the bloomberg develop sovereign bond index has returned 1.5%. on tuesday, we had the lowest level since july as well. finally, to prove that volatility has picked up across all asset classes, the jpmorgan g7 volatility index, since draghi sat on his hands, did absolutely nothing last thursday, and admitted the ecb did not talk about extending qe -- volatility on g7 currencies has risen by 4.8%. wednesday, we reach the highest levels since july. what a period we have had since a week last thursday. julie: that would have been a
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good battle of the charts chart. mark b.: i will save it. julie: you should. bring it back up. let's take a look at u.s. stocks as well -- we do have them continuing to decline. the dow and the s&p each fall .5%. u.s. financials in the declined the most, the biggest drag on the major averages. let's get more details on what is going on at the nasdaq in particular. apple giving it up a little bit, and abigail doolittle is there at the nasdaq with the details. abigail: agree with you on the mark barton chart. good stuff. modestly, is down .4%, and it has to do with apple -- the biggest drag on the market today. the stock has been up four out of the last five days. a huge weekly performance to the best week for apple, julie, in five years. down today, huge week for apple.
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another big drag -- cisco -- shares are down sharply. earlier today our team did speak with the director of research at buckingham research who, in a note, said cisco did confirm the departure of a veteran of the company, the cto, chief technical officer. some investors might be worried about this because cisco is making a transition away from hardware toward software. they also noted that the debt raise, while it will affect earnings, it will only be minimal. there are some factors that could be weighing on cisco with the stock down today. behindi see a lot of red you, but a lot of green -- another tech giant, intel. abigail: indeed. intel is the second biggest boost to the nasdaq pad it did raise its third-quarter revenue to $15.6by about 5%
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billion. what is impressive about this -- the company actually lowered guidance earlier this year, but the new guidance for the third quarter is above what the street had been looking for at the beginning of the year. this is a true raise. when we look a look -- take a look at a chart of intel -- this is a four-year weekly chart. beautiful uptrend, but we see this sideways trend over the last two years. the stock is stuck in this range. the question is whether this consolidation can make a move up. right now, intel is trying to move up, but it is being cap by resistance. perhaps more bullish news will have to come for investors to bid this stock up higher. julie: we shall see. abigail doolittle, accu so much. we check in on first word news this morning. courtney donohoe is in the newsroom. apparently donald trump is speaking at that event in washington, and he did say he does believe president obama was born in the u.s., period, which
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is a repudiation of his previous comments. courtney; exactly. for the first time, he said it -- he believes president obama was born in the united states, and for years he has been one of the people pushing the idea that the president was not born here and not eligible to be president. the president addressed the issue this morning. president obama: i am shocked a question like that would come up at a time we have so many other things to do. i am not that shocked, actually. it is really typical. we have other business to attend to. i was pretty confident about where i was born. i think most people were as well, and my hope would be that the presidential election reflects more serious issues than that. courtney: we look in here to track that news for you. in other news, an appeals court in sweden has upheld a detention order for wikileaks founder julian assange.
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he is one of my prosecutors in a rape investigation. he has avoided extradition to sweden by staying at an embassy of ecuador in london since 2012. his concern is if he goes to sweden he will be turned over to the u.s. for publishing secret dramatic tables. the paris climate accord is being close that close to being formally adopted. up to 30 more nations are expected to join the agreement at the u.n. summit next week in new york according to the top u.s. climate negotiator. still, the country must be joined by countries that make up at least 55% of greenhouse gas emissions. the two biggest polluters, the u.s. and china, have signed on. global leaders attending the nonaligned movement in venezuela would be greeted by anti-government protesters. protesters of president nicolas maduro are cementing to take -- are vowing to take to the street.
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global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i am courtney donohoe. this is bloomberg. mark b.: what a week it was -- we had inflation today, which came in higher than expectations. that leads up nicely, christina queen of, next week. one in five? kristine: just about one in 5 -- slightly below that. that goes to show where the market is headed into the fed meeting next week, and that is pointing to know said rate hikes as far as the market is concerned. mark b.: the other biggie next week is the boj. interesting fx story because the best-performing, but the fx market is telling you a different story. what is going on? kristine: it is telling a
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different story. if you look at a one-week risk-reversal chart, you will see bear sentiment on the yen is thinking appeared investors are paying a premium to buy the dollar against the yen. that was not the case earlier this week. it is a reflection of what markets are expecting from the doj. we have seen a spectrum of expectations -- boj. we have seen a spectrum of expectations being built up into next week. julie: to get back to the fed for a moment, and the expectations thereof, we had inflation data -- the cpi -- showing inflation is heating up yet if you look at w rip and you have the expectations for the september meeting, november and december, you are still not looking at high expectations. so, is it a foregone conclusion, even with that information -- inflation data this morning? kristine: i think so. beatne inflation and that
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estimates will not be enough to sway the fed next week. they will keep an eye on it, and watch it, but as terms of -- in terms of long-term trends, the markets are most sure there will not be a rate hike. julie: so, in the absence of that, will the boj be the primary market driver? true.ne: yeah, that is it seems like the boj has been the central bank to watch given the ecb did not do anything, the boe did not do anything, and the fed is not expected to do anything. where the action lies will probably be with the blg -- boj. mark b.: that is where the action has been in recent months , and we have seen the steepening yield curve in anticipation of the measures the boj might and plymouth. what is most likely when it comes to the policy that could be announced next week? what is interesting if there is no consensus as to what they can do because they have a handful of options. the question is what would be the most effective.
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we have seen us dictations from deeper negative rates for japan to the possibility of them scaling back kisses of long-term purchasesscaling back of long-term bonds, which has big implications for the yield curve in japan. mark b.: it is interesting in the u.k. as well because we see it steepening. why is it steepening, because the boe did nothing? well, what is surprising about the boe meeting is the fact that the minutes actually showed that a lot of policymakers -- a majority of the policymakers at the bank of england -- with support a rate cut if the november outlook matches the forecast in august. so, that revised expectations for further easing, and that helps the yield curve steep and yields longer, short-end have dipped a little bit. on the long end, we have the ongoing story of demand because
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it is one of the higher-yielding sectors of the u.k. yield curve. adding to that, we have 30-year gilt sales next week. that tends to pressure bounds. mark b.: and if the boj does what some people think it will do, start to focus on the long end of the curve, push yields higher, what is the long-term effect on the global market? it will probably spur a mirror affecting global markets because we have already seen that this year -- the japanese bond yield curve has deepened and a larger -- a lot of the major bond markets have followed suit. we have seen that in the u.k., as you mentioned, mark. we will probably see a continuation of that impact, which probably poses a lot of problems for bond investors that hold a lot of these long-term bonds now. mark b.: the u.k. out of long-term -- short-term yields, into taste your long-term yields. thanks for joining us. kristine aquino. i am rejoining the battle of the charts today taking on danny
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berger -- could my charts on european banks get the victory? this is bloomberg. ♪
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this is bloomberg markets. i am julie hyman in new york along with mark barton in london. breaking news -- standard & poor's has raised its outlook for russia from stable to negative. we talked about how russia had cut its interest rate, but also said there would be no further cuts this year. s&p also saying gdp growth over the next several years -- 2017 to running 19 will average 1.6%, and the external debt servicing in 2016 will cost russia $110
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billion versus $130 billion in 2016. that outlook on russia going from stable to negative on s&p. let's get to the global battle of the charts what we look at the most telling charts of the day and what they mean for investors. the charts by running the function featured at the bottom of your screen. i am excited to be in the judging position today. kicking it off is bloomberg's stoxx reporter, danny berger. what do you have? i: it has been all about stocks. apple has had a 21% rally this past quarter. even with the losses today, it is on track for its best week since 2011. that might signed good, but not good for a couple of institutional holders of and not just a couple -- a lot. take a look here. the white line -- it is the price of apple. 2016 was the first year they did not have a positive earnings
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growth in 13 years, so institutional ownership of shares, this blue line, started to decrease. a lot of investors got sour on the news. , a dropnto this quarter even more, and he represents about 300 institutional investors that reached shares, but look what has happened to the stock. it has gone way up this week. certainly, a lot of holders that used to have apple are not happy anymore, and you can check that btv 3589. julie: apple -- an important chart. mark, what you have? mark b.: value destruction -- on my mind. deutsche bank, the biggest drop since june 24, which got me thinking, we have seen so much value disruption in the european banking industry this year, how much market cap has been lost within the stoxx 600 index
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question mark i use my bloomberg and discover the peak for the stoxx 600 banks index was actually on april 20, 2007. back then, the banks index had a valuation -- this is a market cap chart -- of 1.8 9 trillion euros. today, we have gotten worse. today, we are 950 billion euros. do the math, julie -- the difference between the two is 937 billion euros. that is how much value destruction there has been sent 2007. let's put it in simple terms -- 937 billion euros -- that is an apple, almost a whole microsoft. if you are english, that is the hsbc,l, shell, unilever, sap miller, astrazeneca. the low was march 9, 2009. the market cap was 346 billion.
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we were sitting on value $struction the note 1.5 -- 3 trillion. financial index -- its peak, february 20, 2000 7 -- $2.95 trillion. worththen, it has risen, about $3 trillion. what a difference between the banking industry is on both side of the atlantic. #btv 3588. julie: position has come -- in this case, size matters, i like the -- what the chart shows. dani wins onstats,
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chart. a cowards verdict. both of you guys are winners. mark b.: i will take that on a friday. well done, dani. more on apple -- we heard from dani on apple, we're giving you more. how has apple been able to recapture its magic? this is bloomberg. [applause] ♪
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live from new york, i am julie hyman. mark b.: and you're watching bloomberg markets. i am mark martin in london. let's get to the bloomberg business flash, a look at some of the biggest stories in the news. standard chartered might spin off its private equity business to its managers according to people familiar with the matter. chief executive bill winters wants to simplify standard
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chartered and reduce the amount of risk it takes. the bank's private equity unit oversees about $5 billion of assets. there is more concerned about lufthansa's debt and liabilities to the pilots union at the german airline says talks have failed, citing pension costs as the reason for putting with tom -- and s&p has cited pension costs as a reason for putting lufthansa on a list of potential downgrades. let's talk apple. julie: shoppers looking to buy the new iphone 7 -- they better have ordered ahead. some are sold out. mark gurman joins us from san francisco. mark, it amazes me that people still camp out for the stuff, and appellee, they are camped out. is that an indicator of demand, were what we can expect at this point whenever apple comes out with a new problem -- product?
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mark g.: i think it is a bit of both. whenever apple comes out with anything, people will line up. this year, when apple is trying anything -- they do not have as demand.ply as there is a lot of people lining up will not end up getting the phones they want to get because apple said they would only have certain iphone 7 models in stock, and no iphone 7 plus models in stock in stores today. the outlook, is mark? what sort of figures can we expect? mark g.: in terms of the q4 quarter, we can expect the numbers to be a little below the year over year according to the apple forecast from the earnings call a couple of months ago. in terms of the holiday quarter, i think it depends on how well apple sells the phones, and that comes down to how much supply they can build enough supply to meet demand, they will beat their year over year mark for the holiday quarter.
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build enoughannot supply, that might be a tougher thing to do. julie: there is the want and the can when it comes to apple supply. as you pointed out, this appears to be a conscious decision, at least with the initial release of the phone, to not make as many available as people want. is there any kind of backlash about that -- that there aren't enough phones out there for the orders that are coming in? mark g.: i respectfully disagree -- i do not think apple is intentionally holding back phones. i think they simply cannot make enough. there are several factors to indicate that apple simply cannot make enough phones out of the gate, which, of course, is still an issue to your point. they should be able to do that by now after coming out with 10 generations of the iphone. the dual camera yields are very low compared to the single-camera module on the new iphone 7. there is a nine-stop
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manufacturing process for the color, compared to other steps for other colors. in terms of backlash -- loss of people are very unhappy about the devices they ordered from carriers not coming for several weeks, or even into december in some cases, and this is unprecedented in terms of apple's supply and demand balance. julie: mark gurman, think you so much, from san francisco on the iphone. where.: take a look at european equity markets ended the friday session. it was all about deutsche bank -- a tumble in its shares spreading to the industry. look at the board at the end of the friday session. stocks falling for the fourth day in five. bloomberg markets continues. ♪
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matt: it is noon in new york, 5:00 p.m. in london, and midnight in hong kong. i am matt miller. scarlet fu: and i am scarlet fu. welcome to bloomberg markets.
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from bloomberg world headquarters in new york, where covering stories from new york, berlin, bratislava, and beijing this hour. stocks are altering while bond yields are retreating, capping a rocky week where central banks have had to reinvest policy. german chancellor angela merkel has said the eu is in a critical situation p we will get a live update this hour. pandora is ready to go head-to-head with spotify, offering a new on-demand service for five dollars. remarks areergren's coming up. we are halfway through the trading day. let's head over to julie hyman, who has a snapshot of how we are trading. zige: we have another

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